Karnataka unlocks citywide TDR access

In a landmark urban planning move, the Karnataka government has liberalised the Transferable Development Rights (TDR) system in Bengaluru, enabling Development Rights Certificates (DRCs) to be utilised across the entire Greater Bengaluru Area (GBA), irrespective of Local Planning Area (LPA) boundaries.

Until now, TDR usage was confined to the jurisdiction of the issuing authority—such as the Bengaluru Development Authority (BDA) or Bangalore-Mysore Infrastructure Corridor Area Planning Authority (BMICAPA)—restricting their marketability. This limitation discouraged landowners from surrendering land for public projects, as TDRs held limited appeal. Additionally, some developers exploited loopholes, using TDRs in unauthorised locations through backdoor arrangements.

A new government notification, Issued on Tuesday, aims to eliminate these inefficiencies. With the GBA currently spanning 709 square kilometres—and expected to grow further as the Bruhat Bengaluru Mahanagara Palike (BBMP) expands to include surrounding areas—the reform effectively creates a single, unified development market across the city. The BDA will now maintain centralised records for TDR utilisation citywide, regardless of where the certificate originated.

Experts have lauded the reform. A senior BBMP official called it a “much-needed change,” while a city-based builder noted, “This will enable more vertical development and help meet Bengaluru’s rising housing demand.”

This marks the second major TDR policy shift in a year. In 2024, the government allowed BBMP to issue TDRs for agricultural lands—valued at par with residential plots—if converted via development charges. That move made TDRs more financially attractive for landowners, and the latest change further strengthens the system.